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West's trade with Libya brisk despite terror taint, US says

The United States and its European allies do more than $4 billion in business annually with Libya despite charges that Tripoli engages in state-sponsored terrorism, government officials said Tuesday.

US exports to Libya totaled $191 million in 1983. European exports totaled more than $4 billion, said Sen. Arlen Specter (R) of Pennsylvania, who urged State Department officials at a congressional hearing to examine the effects of banning all US trade with Libya. He said US oil companies produce and market half of Libya's crude oil output, while France continues arms sales to Libya.

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Robert Oakley, director of the State Department's Counterterrorism Office, said when the US tightened controls on exports to Libya, European nations rushed to fill the gap.

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